Bitcoin’s 1-3 month short-term investor average purchase price acts as a critical support and resistance level.

The yellow circles on the chart highlight areas where Bitcoin’s price breaks out of this average purchase price or finds support, leading to significant price increases.

However, when the short-term investor realized price acts as resistance and Bitcoin fails to break through this level, the price tends to fall.

With the US Federal Reserve announcing a 50 basis point rate cut, Bitcoin is once again attempting to break out of the 1-3 month investor average purchase price.

This 1-3 month short-term investor average purchase price should be monitored as an important on-chain metric that can determine Bitcoin’s future price direction.